US Economy: Challenges ahead - Nomura

Analysts at Nomura suggest that with the US midterm elections behind us, and an impending return to divided government, upcoming fiscal challenges for both the outgoing 115th and incoming 116th Congresses may begin to affect markets.

Key Quotes

“We see elevated risk of a partial government shutdown in December, the possibility of brinksmanship around the debt ceiling in 2019 and a looming fiscal cliff next autumn owing to remaining caps on discretionary spending in FY20.This reinforces our view that fiscal policy will contribute less to growth next year.”